| Commentary

22.4 Calculating the tax

| Commentary

22.4 Calculating the tax

The disposal of a partner’s fractional share in a partnership asset or his entire share in a business asset used exclusively for the purposes of the partnership business will normally produce either a gain or a loss1. A partner, like any taxpayer, is subject to capital gains tax on the net gains of the whole tax year, so the gain or loss on this disposal must be aggregated with the gains or losses arising on all other chargeable disposals in that year2.

If the result is a net gain, the partner may deduct his annual exemption in

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